Sindh budget: 10% raise in salaries, pensions

May 10, 2018

The Sindh government announced budget for the first quarter of fiscal year 2018-19 with an outlay of Rs.1142 billion (Rs.1.144 trillion), Samaa reported Thursday.

Tenure of the provincial and federal government is ending on May 31 and general elections are likely in July this year.

Sindh Chief Minister Syed Murad Ali Shah, who also holds the portfolio of Finance Minister, presented the budget for fiscal year 2018-19 in Sindh Assembly as opposition protested during his speech.

The government gross revenue receipts are estimated at Rs.1028 billion, and the expenditures Rs.1043.

Rs.120 billion is planned to be raised from sales tax and Rs.665 billion from the federal divisible pool.

Salary/ Pension

The Rs.1.04 trillion budget includes 10% increase in the salaries and pension of the public sector employees coupled with creation of around 46,000 new jobs.

> The rate of minimum pension has been enhanced from Rs.6,000/- to Rs.10, 000/- and minimum family pension from Rs.4, 500 to Rs.7, 500 in respect of the pensioners of government of Sindh.

> The rate of minimum pension will be Rs.15, 000/- for the pensioners whose age is 75 years or above.

Benazir Income Support Program

For the next fiscal an amount of Rs.4.2 billion will be disbursed. Under this measure, Rs.2,000 cash grant is distributed as relief to needy persons.

Health

The allocation for health sector is Rs.85.3 billion on non-development side and Rs.15.50 billion on development side during current financial 2017-18.

New schemes of health sector will be accommodated under the provision of Rs.50 billion earmarked separately.

The government announced Rs.5.59billion grant to SIUT to sustain its services at Karachi and for its new initiatives in other cities. It includes establishment of SUIT at Larkana with an allocation of Rs.497.5 million.

Malnutrition: Some 48% children in Sindh are malnourished and stunted. Keeping it in view, the government has proposed an allocation of Rs.5.1 billion in the next year.

Development

Under the proposed budget Rs.282 billion has been allocated for annual development programme (ADP) including Rs.30 billion for district packages and Rs.50 billion for new schemes.

Education

The allocation of education sector is Rs.178.70 billion. Non-development side and Rs.21.13 billion on Development side during current financial year.

The non-development budget of education has been increased from Rs.178.70 billion to Rs.205.739 billion in next financial year 2018-19.

Whereas, on development side, Rs.24.4 billion are allocated in ADP 2018-19, for 309 on-going schemes only, whereas new schemes of education sector will be accommodated under the provision of Rs.50.00 billion earmarked separately as “Block Allocation” for new schemes for all sectors in ADP 2018-19.

The govt has allocated Rs.9.598 billion in the budget of Sindh Education Foundation for the next financial year 2018-19 as against last year’s Rs.8.085 billion.

For college education an allocation of Rs.5000.000 million has been proposed for ADP 2018-19 for 48 ongoing schemes.

Special education: Rs.1,241 million proposed for next.

Women Empowerment

Sindh government has allocated Rs.426.00 million for execution of various schemes for social, economic, political and legal empowerment of women.

The schemes are:

> Establishment of Sales and Display Resource Centre at Mirpurkhas

> Construction of women club at Makli

> Establishment of women complex at Hyderabad and Larkana

> Improvement of livelihood and well-being of female home based workers

> Imparting driving training for women at Karachi

> Establishment of training Centre and Conference Hall at Jacobabad

Minorities

Sindh government has increase the grant for minorities from Rs.500 million in current year 2017-18 to Rs.750 million for the next financial year 2018-19, which is to be used for financial assistance, medical treatment, scholarships and repair/renovation of religious places of minorities.

Energy

> The first seam of the Thar coal would be exposed and available for utilization by the first week of June 2018.

> The pre-commissioning tests of the power plant would take place in July 2018 and after grid connectivity and synchronization the first electron from Thar Coal will be added to the national grid by December 2018.

> The flow of electricity from Thar would usher a new era of development in the country and transform the entire energy sector.

> During current financial year we have negotiated and finalized with the World Bank “Sindh Solar Energy Project” for deployment of solar PV technologies in Sindh at the estimated cost of US$ 105 Million. The project would be formally launched from next financial year.

During next financial year:

> Village electrification and village gasification programs will continue for which Rs.1200.00 million has been allocated

> Four schemes for assured water supply for Thar Coal filed at the total cost of Rs.33, 310.00 million with next year’s allocation of Rs.2530.00 million will be executed

> Rs.7.00 billion has been allocated for 16 on-going development schemes in ADP 2018-19 for development of road infrastructure and water schemes for Thar coal

> New schemes will be accommodated under the provision of Rs.50.00 billion earmarked separately as Block Allocation for new schemes for all sectors.

Irrigation

For the next financial year 2018-19, Rs.36.11 billion have been proposed in the development budget in ADP 2018-19 for 248 on-going schemes, whereas new schemes of Irrigation sector will be accommodated under the provision of Rs.50.00 billion earmarked separately for new schemes for all sectors.

The development budget also includes Rs.8.500 billion under foreign projects assistance.

Agriculture

Current Revenue Expenditure of Agriculture has been increased by 34% to Rs.10.36 billion in next
financial year as against Rs.7.7 billion in CFY.

The ADP for Agriculture (excluding new schemes) under next financial year is pitched at Rs.5 billion,
besides provincial ADP, Rs.5.94 billion have been allocated for foreign funded projects.

Sindh irrigated agriculture productivity enhancement program has an allocation of Rs.1.08 billion under
on-going schemes.

Preservation & storage facility of fruits and vegetables through hot water treatment & controlled
atmosphere store on subsidy to farmers is kept at Rs.508.8 million.

Provision of solar water pumps/tube wells on subsidized rates to farmers in Sindh will be
continued under on-going with Rs.113 million.

During next financial year 2018-19 subsidy assistance of Rs.9.650 billion to the farmers will be provided for tractors, agricultural implements, Solar Pumps and Tube wells etc.

> Further research will continue to develop new varieties, for production of Hybrid Seed for different Crops.

> Research in agriculture has shown good results and new varieties of corps have been developed with
remarkable increase in the yield.

For example, after research of many years, cotton production has increased by 21%; Wheat, 51%; Rice, 45%;Sugarcane, 13%; Mango 6% and Okra 34%.

Whereas yield potential per acre is cotton 52-60 mnd; sugarcane, 1300 – 1400 mnd; wheat, 70-85 mnd.